The Department of Health and Human Services’ Office of Inspector General today issued a report identifying vulnerabilities in the hospital wage index system for Medicare payments. “As a result of these vulnerabilities, wage indexes may not always accurately reflect local labor prices and, therefore, Medicare payments to hospitals and other providers may not be appropriately adjusted to reflect local labor prices,” the report says. The Centers for Medicare & Medicaid Services uses area wage indexes to adjust hospital payments annually to reflect local labor prices. CMS calculates each area’s wage index based on wage data submitted by acute care hospitals in their Medicare cost reports. OIG issued a number of recommendations for addressing the vulnerabilities.

Related News Articles

Headline
The House Dec. 1 passed the Hospital Inpatient Services Modernization Act (H.R. 4313), legislation extending certain Medicare waivers authorizing the hospital-…
Headline
The Centers for Medicare & Medicaid Services announced Dec. 1 that it intends to expand the Inpatient Rehabilitation Facility Review Choice Demonstration…
Headline
The Centers for Medicare & Medicaid Services Nov. 25 announced lower prices for 15 Medicare Part D drugs selected for the second cycle of negotiations…
Headline
The Centers for Medicare & Medicaid Services Nov. 25 issued a proposed rule for policies governing the Medicare Advantage and Part D programs for 2027. CMS…
Headline
The Centers for Medicare & Medicaid Services released an updated notice Nov. 20 on the processing of Medicare provider claims impacted by the government…
Headline
The Medicare Part A deductible for inpatient hospital services will increase by $60 in calendar year 2026 to $1,736, the Centers for Medicare & Medicaid…